Sao Paulo, Dec 30: Brazil has halted the issuance of temporary work visas for BYD, the Chinese electric vehicle maker, following accusations that 163 Chinese workers were trafficked to work under “slavery-like” conditions at a factory construction site in the northeastern state of Bahia.
The decision, announced by the Ministry of Foreign Affairs on Friday, follows findings by Brazil’s labor authorities that the workers, employed by contractor Jinjiang Group, were brought to Brazil irregularly. The authorities confirmed the workers were victims of human trafficking, prompting the suspension of BYD’s visa issuance for its ongoing projects in the country.
The workers, who were part of a $620 million factory investment by BYD, were allegedly subjected to poor conditions while working at the site, which has become a symbol of China’s expanding influence in Brazil. The Bahia factory, a crucial part of BYD’s strategy to boost production in Brazil, is set to begin manufacturing cars in early 2025, with an expected initial output of 150,000 vehicles annually.
The Brazilian Ministry of Justice has indicated that if further irregularities are confirmed at the construction site, it will revoke the residence permits of the 163 workers involved. The Ministry had requested the suspension of BYD’s temporary visa issuance on Dec. 20, three days before the findings were publicly revealed.
In a statement released by a BYD spokesperson, Jinjiang Group rejected the accusations, claiming that the portrayal of the workers as “enslaved” was inaccurate and the result of translation misunderstandings.
Meanwhile, the Labor Prosecutor’s Office confirmed that BYD and Jinjiang Group have agreed to provide the workers with hotel accommodations while their contracts are being terminated.
The incident has put a strain on Brazil-China relations, as the factory represents a growing economic and diplomatic tie between the two nations. Brazil is now BYD’s largest market outside China, with nearly 20% of the company’s sales abroad coming from the South American country in 2024.
The labor dispute comes at a time of heightened scrutiny over labor conditions for foreign workers in Brazil, raising questions about corporate responsibility and worker rights at foreign investment projects.
